Sustainable Financial Inclusion Through Social Progress and Regularity Quality Interaction – Implication for Least Developed Countries

Ul-Durar, Shajara; Iqbal, Mubasher; Naveed, Shabana; Massacci, Alberto; Saleem, Irfan

Abstract

Sustainable development through social progress is resolute in enhancing financial inclusion through spreading the affordable financial facilities. However, the Social Progress Index (SPI) reflects sustainable development by measuring a country's ability to meet basic human needs, support well-being, and provide opportunities for a better quality of life, beyond just economic growth, and pave the way for spreading access to affordable financial services. This study has considered least-developed countries due to their diverse socio-economic challenges and financial disparities. For this purpose, data from 2011 to 2023 is considered. Estimated results using the Driscoll-Kraay standard error and Panel Quantile Regression methods have validated the inverted U-shaped impact of social progress on financial inclusion. It implies that moderate levels of social progress can enhance financial access. However, excessive focus on social progress without adequate economic growth hinders financial service expansion, ultimately affecting overall economic stability and inclusion. This study incorporates regularity quality as a determinant of financial inclusion and a moderator of social progress. It negatively determines financial inclusion but, as a moderator, it boosts social progress towards sustainable financial inclusion. Furthermore, overall productive capacity and technology, mainly through internet usage as the model's control variables, are vital in promoting financial inclusion.

Citation

Ul-Durar, S., Iqbal, M., Naveed, S., Massacci, A., & Saleem, I. (2025). Sustainable Financial Inclusion Through Social Progress and Regularity Quality Interaction – Implication for Least Developed Countries. Research in International Business and Finance, 76, Article 102811. https://doi.org/10.1016/j.ribaf.2025.102811

• Journal Article Type: Article
• Acceptance Date: Feb 13, 2025
• Online Publication Date: Feb 14, 2025
• Publication Date: 2025-04
• Deposit Date: Feb 25, 2025
• Publicly Available Date: Feb 25, 2025
• Journal: Research in International Business and Finance
• Print ISSN: 0275-5319
• Electronic ISSN: 1878-3384
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 76
• Article Number: 102811
• DOI: https://doi.org/10.1016/j.ribaf.2025.102811
• Keywords: Sustainable financial inclusion; Sustainable development; Inclusive growth; Regularity quality; Panel Quantile Regression (PQR)
• Public URL: https://durham-repository.worktribe.com/output/3543478